Oil rally pauses after sharp weekly surge above 12%

Crude oil prices steadied after surging more than 12% this week, as escalating US-Iran tensions and the reinstatement of a naval blockade near the Strait of Hormuz heightened concerns over global supply disruptions. The rally pushed oil to a one-month high, reversing nearly a third of the losses recorded in the second quarter following the interim peace agreement. Adding to the bullish sentiment, the US EIA reported a larger-than-expected decline of 1.7 million barrels in commercial crude oil inventories for the week ended July 10, with stockpiles remaining about 6% below the five-year seasonal average. Reflecting the firm global trend, MCX July crude oil futures traded higher by around Rs 15 at Rs 7,675 per barrel.

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